After the Spanish general election of 20 December 2015 failed to deliver an overall majority for any political party, extensive negotiations ensued to form a government in the country. As a result, the previous People's Party (PP) cabinet headed by Mariano Rajoy was forced to remain in a caretaker capacity for 314 days until the next government could be sworn in.
After a series of inconclusive inter-party negotiations, leader of the Spanish Socialist Workers' Party (PSOE) Pedro Sánchez tried and failed to pass an investiture vote on 2–4 March. Subsequently, a political impasse set in as King Felipe VI could not find a new candidate to nominate with sufficient parliamentary support. As a result, a snap election was held on 26 June. The second election also proved inconclusive, and a failed investiture attempt by Rajoy on 31 August raised the prospect of a third election.
On 1 October, a party rebellion resulted in Sánchez being ousted as leader of the PSOE and the latter voting to allow the formation of a PP minority government. This materialized on 29 October when the PSOE abstained in Rajoy's second investiture bid, thus ending the political deadlock.
Legal provisions The Spanish Constitution of 1978 outlined the procedure for government formation, which started with the monarch summoning representatives of the various political groups in the Congress of Deputies to a round of talks or consultations, after which a candidate was to be nominated through the President of the Congress to attempt investiture as prime minister.
For a nominated candidate to be granted confidence, he or she required to secure the support of an absolute majority in the Congress, or of a plurality in a subsequent vote held 48 hours later. If any of such ballots was successful, the monarch would appoint the elected candidate as prime minister. Otherwise, a two-month period would begin in which new investiture proposals could be attempted under the aforementioned procedure, with parliament being automatically dissolved and a snap election held if no candidate was successful in securing the confidence of parliament.
The procedure for investiture processes was regulated within Articles 170 to 172 of the Standing Orders of the Congress of Deputies, which provided for the investiture debate starting with the nominated candidate explaining their political programme without any time limitations. Subsequently, spokespeople from the different parliamentary groups in Congress were allowed to speak for thirty minutes, with an opportunity to reply or rectify themselves for ten minutes. The nominated candidate was allowed to take the floor and speak at any time of his or her request during the debate.
First formation round (December 2015 – April 2016)
Post-2015 election developments
Initial positions As the 2015 Spanish general election produced a very fragmented parliament, a multi-party agreement was expected to be required in order for a stable government to be formed. Caretaker prime minister and People's Party (PP) leader Mariano Rajoy said that he would try to form an administration, whereas opposition and Spanish Socialist Workers' Party (PSOE) leader Pedro Sánchez advocated for a change in government. Two possible coalitions based on the left–right political spectrum, the right-wing (PP with Citizens (C's))—and the left-wing (PSOE with Podemos), were both short of an overall majority—set at 176 seats—by themselves.
There was speculation around four outcomes:
A grand coalition of PP and PSOE, an unprecedented phenomenon in Spanish politics but the only feasible two-party deal that would be able to reach an absolute majority, with 213 seats. A PSOE, Podemos and C's alliance, comprising 199 seats. A PSOE, Podemos and United Left (IU) coalition—comprising 161 seats—together with smaller regional parties. Parliamentary deadlock lasting for two months from a first failed investiture ballot, leading to a new general election to be held at some point throughout 2016.
As a result of the arithmetical infeasibility of an alliance with C's, Rajoy intended for reaching out to the PSOE to at least secure their abstention in his investiture, even suggesting giving them out some additional posts in the Congress bureau. This possibility was not contemplated by Sánchez, but he and his party avoided making any comments on the formation of an alternative left-wing government that included Podemos and its regional alliances. Some within the party—such as president of Castilla–La Mancha Emiliano García-Page—pointed out that, even if the PSOE obtained Podemos's support, it would not muster a majority without that of other parties as well and advocated for the party to remain in opposition.
Podemos leader Pablo Iglesias laid out stiff terms in order to consider starting negotiations with any party, including the protection of rights within the Constitution, electoral reform, the introduction of recall elections and a new territorial agreement that recognized Spain as a plurinational state and allowed for the recognition of a self-determination referendum in Catalonia. The party's policy secretary, Íñigo Errejón, also expressed their initial refusal to support Sánchez as a prospective candidate for prime minister, suggesting instead to look for "an independent candidate, above parties". C's leader Albert Rivera had promised during the campaign that he would not be actively supporting either a PP or a PSOE-led government, but that his party could consider an abstention to allow the formation of a minority PP cabinet and that it would oppose any alliance in which Podemos was involved.
PSOE's stance As a consequence of the election, the PSOE was placed in a kingmaker position. Several regional PSOE leaders rallied around Andalusian president Susana Díaz and warned Sánchez against any agreement with Podemos, seeing the conditions put forward by Pablo Iglesias in the election aftermath as "unaffordable". Some regional premiers from the party—such as García-Page, Valencian president Ximo Puig, Asturias's Javier Fernández or Extremadura's Guillermo Fernández Vara—favoured letting the PP try to form a government on its own. After a meeting with Rajoy on 23 December, Sánchez opposed any deals with the PP and voiced his preference to probe alternative alliances instead, while also rejecting a previous proposal from Albert Rivera of a deal between PP, PSOE and C's—explicitly excluding Podemos—that promoted "the regeneration policy reforms that Spain needed".
Sánchez also faced criticism from within his own party in light of his election result—the worst in the PSOE's recent history up to that point—as his critics aimed for a party congress to be held in February to vote on a new leadership. Díaz—who had become the leading figure of the PSOE's internal opposition to Sánchez—sought to become the new party leader and to eventually lead the PSOE into a new general election, wanting to limit Sánchez's pact policy through the resolutions of the party's federal committee. This was accomplished on 28 December, when the party determined that, should Podemos not withdraw its red line condition to hold a referendum in Catalonia, the party would not discuss any pacts with them, requiring Sánchez to avoid becoming prime minister "at any price". Concurrently and in spite of his strong contestation within the party, Sánchez suggested delaying the PSOE leadership election until a new government was formed or a new election was held, with critics claiming that the election should be held "when it is due".
In order to force Sánchez into the negotiating table, PP, Podemos, and C's took advantage of the growing rebellion within the PSOE. Pablo Iglesias questioned that people within the PSOE "wouldn't allow Pedro be prime minister", noting that Sánchez "does not control" the party, while warning of the dangers of a hypothetical "three-way grand coalition" between PP, PSOE and C's that Podemos would oppose. Rivera pointed out that his party was waiting "for [the PSOE] to solve its internal affairs", whereas the PP reaffirmed its claim to lead the next Spanish government by seeking a multy-party pact with PSOE and C's. PSOE's spokesperson Antonio Hernando confirmed on 5 January that the PSOE would reject the PP's proposal of a grand coalition.
On 30 January, amid discussions between the different party factions on the party congress's date—with those supporting Sánchez seeking to delay it until June and his critics wishing to hold it sooner, in April—an agreement was reached for a new leadership to be elected through a party primary election on 8 May, with Sánchez announcing his will to seek re-election. The party congress to ratify the result of the primaries was scheduled for 20–22 May.
PP scandals
As negotiations for the formation of a new government stagnated, corruption scandals shook Rajoy's party and made it harder for him to secure support for an investiture vote. Two weeks before the election, it was unveiled that PP deputy Pedro Gómez de la Serna had been paid kickbacks worth millions of euros through a business he shared with another PP member, Spain's ambassador to India Gustavo de Arístegui, who resigned shortly thereafter. Gómez de la Serna, who was re-elected as deputy in the 20 December election, refused to vacate his seat, resulting in him being expelled from the PP and forced into the Mixed Group in Congress.
On 22 January 2016, the PP became the first party to ever be judicially charged in a corruption case—a legal figure passed into law by Rajoy's cabinet itself in 2015—after being accused of destroying former treasurer Luis Bárcenas's hard drives in 2013, allegedly containing information related to the party's illegal funding. The same day, a member of deputy prime minister Soraya Sáenz de Santamaría's staff was forced to resign from office after it the unveiling of his involvement in a case of fraudulent awarding of public contracts.
In early February, an illegal financing network was uncovered affecting the Valencian branch of the PP, with dozens of party officials and city councillors either indicted or arrested. Judicial investigation also pointed to former long-time mayor of Valencia and one of the PP's most lauded figures, Rita Barberá, as a participant in the scandal. On 11 February, evidence suggesting that the kickbacks-for-contracts scheme of the Púnica scandal could also involve an illegal financing of the Madrilenian PP led to the resignation of party's regional leader Esperanza Aguirre three days later.
Further scandals affecting the party were unveiled throughout April. The Spanish National Police Corps were sent to register the town hall of Granada—the fourth largest city of Andalusia and nineteenth of Spain—after the city mayor and his government—from the PP—were accused of having been involved in an urban planning corruption scandal. Concurrently, the Spanish Treasury fined former prime minister José María Aznar for evading tax payments through a secret society. Finally on 15 April, interim industry minister José Manuel Soria was found to be involved in the Panama Papers scandal, owing to the leaking of information earlier that week revealing that he and his family had maintained several offshore societies on tax havens during the previous decades. Soria initially claimed the falsehood of such claims, but during the ensuing days reports kept leaking that contradicted his initial clarifications. After it was revealed that he had owned one of such societies on Jersey until 2002 during his term as mayor of Las Palmas, he was put in a critical political position over his confusing and changing explanations on the issue, which ultimately led to his renounce.
Candidate Pedro Sánchez (PSOE)
Rajoy's withdrawal